Solid Energy says its wood pellet plant near Taupo will be out of action for about a week following an explosion and fire on Tuesday night.
Emergency services were called to the Nature's Flame factory at Rotokawa just before 9pm.
The company says two operators were at the plant when there was a small explosion and fire. Noone was hurt.
Nature's Flame says the plant's fire suppression and safety systems worked and the fire was contained in a small area.
It says the plant has a good stockpile of wood pellets on hand and there should not be any problems supplying customers.
An investigation into the cause of the explosion is underway.